South Africa Paper Packaging Market Size

South Africa Paper Packaging Market Analysis

The South Africa Paper Packaging Market is expected to register a CAGR of 5.98% during the forecast period(2024-2029).

The South Africa Paper Packaging Market size is expected to grow from USD 2.16 billion in 2023 to USD 2.89 billion by 2028, at a CAGR of 5.98% during the forecast period (2023-2028).

The increase in demand for Paper Packaging in the Food and Beverage Industry in South Africa is projected to augment the market growth of paper-based packaging.

• The bulk of South Africa's industrial sector comprises the food and beverage industries, and paper packaging is the material of choice in the packaged food market. These can be found in various meals, such as dairy products, spices, and soups. It is frequently covered with plastics or polymers to preserve pristine and undamaged paper. It assists in lowering the overall finished product weight while retaining the freshness of the food product compared to glass and metal.
• In the last three years, South Africa's Department of Trade and Industry funded the food-processing sector with ZAR 736 million (USD 40.24 million) in incentives, while its Enterprise Investment Programme (EIP) incentive disbursed ZAR 636 million (USD 34.77 million) and facilitated investments of ZAR 3.7 billion (USD 0.20 billion) in the sector.
• Further, South Africa increased the demand for premium packaging, mainly from the cosmetics and household segments. In these categories, consumers use the packaging quality as a primary indication of the product's quality.
• The expansion of e-commerce sales and the rising demand for folded carton packaging are two significant factors driving the market under consideration across the country. On the other hand, the availability of high-performance substitutes is likely to stifle market growth.
• Plastics are incredibly long-lasting and can withstand harsh logistical and shipping circumstances. Plastics also have good visual appeal and superior moisture and air barrier qualities. The growing popularity of plastics poses a severe threat to the future growth of the paper packaging sector.
• The COVID-19 epidemic had a detrimental effect on the packaging sector, leading to a national lockdown, corporate sourcing decisions away from China, and packaging materials reevaluation. Despite having a sizable impact on the supply side of paper packaging, paper packaging scope dramatically grew due to a significant increase in end-user demand in particular applications.